The emergency motion for approval of the Prime “affiliation” was filed Thursday. The broker/carrier agreement with New Prime Inc.’s Prime Logistics calls for O&S to receive 80 percent of the freight revenue from the relationship — “critical” liquidity that would not be possible otherwise, according to court documents.

So O&S is asking to do a "percentage lease agreement" with Prime? Are they giving up their MC and "leasing on"?

Among the 200 to 999 estimated number of creditors, the filing lists debts of $220,000 to Springfield Freightliner Sales for a maintenance contract; $211,211 to Bridgestone/Firestone; $200,000 to a Kansas City law firm for a wrongful death settlement; $196,301 to Comdata for fuel card purchases; $142,662 to Pilot Corp. for fuel; and $98,993 to Transport International Pool for trailer leases.

$350K in unpaid fuel purchases - $100K for trailer leases?

I mean - were these guys actually HAULING ANYTHING?

See what happens when you "haul cheap freight"?

Find it difficult to believe that "they" didn't see this coming.

OTOH - the leased units are not listed as a "liability" - which means another "shell company" is the lease/lender )(or the financing was done through an actual REAL lease/lender) - and the lease/OO's may actually be afforded the "option" of signing on (amending) their lease agreements to make Prime their carrier (for whatever that's worth) - depending on whether or not O&S is actually going to keep their authority active.

Guys would be better off signing on with BBB...

Rick

These guys brokered loads. I never hauled for them but I did see loads posted by them. I hope nobody got/gets burnt but seems unlikely if they were BK.

Originally Posted by ShortBusKid

These guys brokered loads. I never hauled for them but I did see loads posted by them. I hope nobody got/gets burnt but seems unlikely if they were BK.

The article referenced by the OP didn't even list debts owed on brokered loads. I'd suspect it was done under (yet) another "corporate veil".

Once the bond is exhausted - you go after the broker.

Guess it's not going to be as much of a mess as when Arrow went under (leaving drivers stranded all over the country).

http://www.tulsaworld.com/business/a...5_CUTLIN242367

Now THERE was a real frikkin MESS...

Rick

$50k worth of assets, you mean to tell me that this company doesn't have any cash on hand, they obviously weren't paying their fuel bills. Tell me this guy doesn't know his way around the bankruptcy code & how to hide money.

Entering into a Lease Purchase contract is like a barfight- anything can happen before it's over, and it probably won't be over soon.

Originally Posted by vangtransport

$50k worth of assets, you mean to tell me that this company doesn't have any cash on hand, they obviously weren't paying their fuel bills. Tell me this guy doesn't know his way around the bankruptcy code & how to hide money.

yeah no joke

Originally Posted by Old Man

Wonder what will happen to their lease purchase drivers? They will be given to Prime, but Prime is not a lease to own, another reason to avoid lease purchase company's.

Sure we do. There's a buyout clause written into Prime's lease contract. Get your own financing, or you can continue payments to finish the purchase. One can also enter a lease/purchase contract as well.

My guess is that Prime will honor the contracts with the O&S drivers as written.